One third (33%) of respondents say that staff now want and need more guidance around their pension decisions at retirement.
The Employee Benefits/Nest research 2017, which surveyed 254 employer respondents in September 2017, discovered that employees' desire for guidance continues to be prevalent due to the greater choice afforded to them following the introduction of the pension freedoms in 2015, with a third (33%) of respondents saying that staff now want and need more guidance around their pension decisions at retirement.
The pension freedoms give staff over the age of 55 greater freedom in how they access their pension savings, with scheme members now able to take their pension wealth as a lump sum, drawdown or as an annuity.
The increased choice available to staff appears to have positively impacted engagement with their pension scheme, which remains the second key way in which the freedoms have impacted employees and employers. This year, just over a quarter (28%) said this was the case.
In response to the freedoms, 23% of respondents to this year's research have introducing a financial education programme for all staff, with the same percentage carrying out a pension engagement exercise, suggesting staff are better equipped with knowledge. These two options have topped the list of changes respondents have made since we introduced this question when the reforms came into effect.
The top ways pension freedoms are impacting staff and organisations
Sample: All respondents (178)
More staff want and need guidance with regard to their pension decisions at retirement 33%
Staff are more engaged with their pension scheme 28%
More staff want more guidance with regard to pension savings throughout their career 26%
Younger staff are more more engaged with their pension scheme 20%
Staff are now recognising the value of their pension 20%
More staff are now planning for their retirement or are willing to consider their retirement plans 20%
They have made no difference: staff remain apathetic about saving for retirement 18%
Staff are increasingly likely to be saving more 17%
Staff are starting to see the workplace as a facilitator or workplace savings 15%
Staff are better prepared for retirement 14%
Pension Wise is too basic for employees' needs 12%
Do not know 11%
They have made no difference: respondents already offer a comprehensive at-retirement package for all staff 8%
They are prompting respondents to review their working relationship with their pension provider 7%
They are little too late for employees approaching, or at, retirement 6%
None of the above 2%
Other 1%
The changes respondents have made in their organisation in response to the pension freedoms
Sample: All respondents (230)
They have introduced financial education programme for all staff 19%
They have carried out a pensions engagement exercise 19%
They have altered their defined contribution pension investment choices to reflect the more flexible options at retirement 14%
They have introduced financial education for staff approaching retirement 13%
They have introduced access to one-to-one finance advice for staff approaching retirement 9%
They have introduced a financial education programme for those approaching or at the annual or lifetime pension allowance limits 7%
They have introduced access to one-to-one financial advice for staff approaching, or at, the annual or lifetime pension limits 7%
They have referred all staff to Pension Wise 6%
Other 10%
None of the above 38%
They have introduced an annuity referral service 2%